To test these propositions, a field study using mailed
questionnaires was conducted in two phases. This
approach is useful for accessing organizational processes in the
settings where they natural-ly occur with minimal intrusiveness
by the researcher (McGrath, 1982). The study is
crosssectional and the objective was to use factor analysis
and a correlational approach to test the hypothesized
relationships. The next three subsections describe the
research instrument, the sample, and analysis used in this
research.

Research Instrument

A pretest of the research instrument was conducted in order to
evaluate new questionnaire items developed for the
research. This provided an exploratory approach to aid in
operationalizing constructs that need further development, such
as competitive aggres-sive-ness, for which a widely recognized
set of survey items is not currently in use. After
preparing written responses, pretest respondents were
interviewed for feedback regarding the clarity and intent of the
survey items. Results of the pretest were evaluated
and implemented prior to finaliz-ing the research instrument.

The research instrument was a mail questionnaire. Some
researchers have found it difficult to obtain data from small
businesses (Sapienza, Smith, & Gannon, 1988). Therefore, a
procedure developed by Dillman (1978) to increase response rates
was followed. Dillman's approach is based on a series of
specifically timed mailings including an initial mailing along
with a cover letter, a postcard reminder sent out one week after
the initial mailing, and, three weeks after the original
mailout, a letter and replacement questionnaire was sent to
all nonrespondents. In some cases, a final attempt was made seven
weeks after the original mailing.

Four dimensions of EOinnovativeness, risk taking,
proactiveness, and competitive aggressivenesswere measured
using scales developed and tested for reliability by Khandwalla
(1977), Miller (1983), Covin and Slevin (1986, 1989) and Covin
and Covin (1990). These scales have been supplemented by
items developed by the first author to capture aspects of the
constructs that may not be included in the previously used
scales. The full entrepreneurial orientation scale is
included in Appendix 1. For purposes of this analysis, only the
competitive aggressiveness and proactiveness scales are discussed
below.

Proactiveness was measured using a two item, 7point
scale developed by Covin and Slevin (1986) that asks about the
firm's tendency to lead rather than follow in the development of
new procedures and technologies, and the introduction of new
products or services. These two items were supplemented by
a third question developed by the first author to ask about the
firm's tendency to act in anticipation of future changes and
needs. Competitive aggressiveness was measured with one
7point scale item developed by Covin and Slevin (1989)
using language originated by Khandwalla (1977). This
question asks managers if they prefer to
"undothe competitors" or to
"liveandletlive."
An additional question aimed at
identifying the firm's posture relative to industry rivals
was also originated by the first author.